Pakistan International Airlines was never just an airline. It was a living chapter of Pakistan’s identity, dignity, and history. An institution that once taught Asia the modern principles of aviation now finds itself reduced to a few figures on paper. The government claims that PIA has been sold for Rs 135 billion, but when the true contours of this deal are examined, it no longer appears to be a sale — it becomes a bitter question. Out of the declared Rs 135 billion, the government will receive only Rs 10 billion in cash, while the remaining amount exists merely as investment commitments. Control, governance, and decision-making authority have been handed over, yet the full price has not actually been paid.
Today, PIA owns approximately 32 to 34 aircraft, including Boeing 777s, Airbus A320s, and ATR aircraft. Based on global market values, a single Boeing 777 — depending on age and condition — is worth roughly USD 25 to 40 Million. The total estimated value of PIA’s Boeing 777 fleet alone reaches around Rs 200 to 250 Billion. When Airbus A320s and ATR aircraft are added, the conservative valuation of PIA’s aircraft fleet stands between Rs 300 and 350 billion, even if some aircraft remain grounded. This reality is rarely acknowledged in the privatization narrative presented to the public.
And aircraft are not the only assets. PIA possesses valuable international routes, landing rights, trained pilots and engineers, training centers, maintenance hangars, and aviation infrastructure spread across Pakistan. Beyond aviation, there are non-core assets that are often quietly ignored. The Roosevelt Hotel in the heart of New York City, occupying an entire city block, is estimated by experts to be worth at least USD 1 billion — approximately Rs 280 billion. The Scribe Hotel in Paris, another PIA-owned property located in one of Europe’s most expensive districts, further adds to this immense asset base. The combined value of these two hotels alone exceeds the price at which the entire airline is claimed to have been sold.
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Despite this, the public is repeatedly told that PIA was a loss-making enterprise and that its sale was unavoidable. What is rarely explained is the real reason behind those losses. For decades, politically motivated hiring, turning the airline into an employment scheme, the destruction of merit, poor strategic decisions, and continuous government interference steadily weakened PIA. This was not a failure of the institution itself — it was a failure of governance. Yet the punishment is not being borne by decision-makers; it is being imposed on the nation.
The most alarming aspect of this transaction is debt. PIA’s outstanding liabilities, amounting to hundreds of billions of rupees, will not be paid by the new owners. The Government of Pakistan has assumed this burden, meaning it will ultimately be paid by the public. On one side, aircraft, routes, assets, and control are transferred to a private consortium; on the other, debt, pensions, unpaid dues, and losses are shifted to the state. Profit moves to private hands, while losses remain nationalized. Is this what fair privatization looks like?
When all facts are put together, the picture is stark. Aircraft valued at Rs 300–350 billion, the Roosevelt and Scribe hotels worth at least Rs 300 billion, and additional assets, routes, and infrastructure beyond that. By any reasonable calculation, PIA’s real value easily exceeds Rs 600–700 billion. Against this backdrop, a deal advertised as Rs 135 billion — with only Rs 10 billion paid upfront and the rest based on investment promises — fails even the most basic tests of financial logic.
The question, therefore, is simple but profound: when assets worth hundreds of billions are transferred, control is handed over immediately, public debt remains with the state, and only Rs 10 billion is received in cash — can this honestly be called anything other than a loss-making deal? If this is not a loss, then how should national loss be defined? History may not ask this question today, but it certainly will tomorrow.
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It is also important to note who stands behind this deal. The successful bidder is the Arif Habib Consortium, led by the Arif Habib Corporation Group. Other members reportedly include Fatima Fertilizer, the elite City School network spread across the country, and Lake City Holdings. Reports also suggest that large entities such as Fauji Fertilizer Company may be associated with the consortium. On the other side stood the Lucky Cement Group–led consortium, which submitted a bid of Rs 134 billion — just one billion rupees short of the winning offer.
The government presented this privatization as an open auction to demonstrate transparency to the world. Yet what transpired behind the curtain is not difficult to understand for those familiar with Pakistan’s political economy. Open processes do not always guarantee open outcomes.
In the end, Pakistan has lost control of an asset that could have been made profitable through strict governance reforms rather than outright sale. The message sent to the nation is deeply troubling: we are willing to sell everything, but unwilling — or unable — to fix governance. That may be the most expensive cost of all.
